But these manufacturers are jacking themselves up and fighting to regain market share with some help from state government.

Over the past two years, the Michigan Economic Development Corp. tool-and-die recovery program has given state and local tax breaks to 17 coalitions composed of 131 companies.

Â?For 100 years, Michigan was the tool-and-die center of the world,Â? said Michael Shore, MEDC chief communications officer. Â?But local and global changes have placed competitive pressure on the industry.Â?

The industry manufactures molds that shape molten plastic into assorted products, as well as dies used to curve, bend, fold and transform sheets of metal into vehicle components.

Shore pointed to Internet commerce as a factor in making the global marketplace even more competitive.

Â?Twenty years ago, it was so hard to navigate the world to look for a die or mold,Â? Shore said. Â?Today, someone in Benton Harbor can order something from Shanghai, whether itÂ?s 8 oÂ?clock our time or their time.Â?

Mounting competition from China, Korea, Taiwan and Eastern Europe have eaten into the market share of Michigan companies, said Jay Baron of the Center for Automotive Research in Ann Arbor.

The non-profit center analyzes the effects of international, federal and local issues on businesses that rely on the auto industry.

Â?ItÂ?s generally recognized that tools from these countries are not at par with our quality,Â? Baron said. Â?On average, thatÂ?s true. But in recent years, that gap has been closing.

Â?The recovery zones are there to make Michigan businesses more competitive.Â?

Bill Berghuis, president of the Southwest Michigan Tooling Coalition, said that the tax-free zones have helped businesses in his area. The coalition was formed this year by 16 companies in Berrien, Cass, St. Joseph, Kalamazoo, Calhoun, Branch and Allegan counties.

market rover

Â?WeÂ?re relatively new as a coalition and weÂ?re still finding our way around,Â? Berghuis said. Â?But the business climate here seems pretty healthy. WeÂ?ve been busy.Â?

Among the groupÂ?s priorities are combining marketing efforts and looking for new opportunities, such as manufacturing equipment for the medical industry.

Â?The biggest challenge is cooperation,Â? said Berghuis. Â?Companies that used to compete with each other must now learn to cooperate.

Â?This is new territory and it isnÂ?t easy. We have to handle day-to-day problems in our individual businesses and work together as a coalition, too.Â?

According to Baron, another benefit of working in a coalition is being able to share workloads.